Legal Considerations for Debt Collection, Explained

You work hard, provide a service, and take pride in what you do. Not only is it frustrating when your invoices go unpaid, it puts your company at risk. As a business owner, there are steps that you can take to maximize the likelihood you’ll be paid in a timely manner and to collect payment from delinquent clients.

Rebekah Lusk and her associates are well versed in Maryland law regarding collection of debts. If you are a business owner or landlord who needs help collecting a debt or assistance drafting a payment contract for prospective clients, call Lusk Law, LLC.

Understanding Debt Collection Law

While you may feel victimized and angry about a client or tenant who refuses to pay you what you’re owed, you have to be careful about how you attempt to collect a debt. Consumers in Maryland are protected by federal law (the Fair Debt Collection Practices Act, or FDCPA) and even stronger provisions in state law (the Maryland Consumer Debt Collection Act, or MCDCA).

The FDCPA makes it illegal for collection agencies to use deceptive or intrusive practices when trying to collect a debt. The MCDCA goes even further than the federal law, covering creditors in addition to collectors and requiring that collection agencies be licensed and regulated by the state.

If you have a debt to collect, don’t risk violating the law and getting sued. A debt collection lawyer will be able to explain your options and help you get paid while staying within the law.

Your Debt Collection Options

You have a few options for attempting to collect an outstanding debt.

  • You can hire a collection agency to go after the debtor for you. However, if the agency uses overly aggressive tactics, violating state or federal law, you could be found legally liable for hiring the agency.
  • If a relatively small amount of money is at stake, the most financially feasible option may be to write off the debt. The loss may be tax-deductible.
  • You can sue the debtor for your money, if you are a sole proprietor or independent contractor. This isn’t an option if your company is structured as a corporation.
  • You can hire a business law attorney. A lawyer will know how to go after your money while staying on the right side of the law.

How Lusk Law, LLC — Advocates for Life’s Obstacles and Opportunities — Will Protect Your Business

Before your company is even off the ground, the Maryland business lawyers at Lusk Law, LLC can help you create a contract that specifies to all potential clients how you expect to be paid. By accepting modern,  easy-to-use technologies like PayPal, you can make payments easier for your customers and reduce processing delays. Depending on your industry and business, you may want to require partial or full payment upfront. We can also advise how to protect yourself from false accusations of unsatisfactory work.

And if you are owed money and the client refuses to pay, we can help. Sometimes, an official-sounding letter on legal letterhead gets the desired result. But we will take your case to court if that’s what it takes for you to receive your hard-earned money.

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